These will be convertible into shares in new mining vehicle MRC Tampakan, Inc., which might be listed on the local bourse as early as before yearend, executives said yesterday.

“The initial public offering (IPO) may happen eventually in the two phases of financing,� MRC Allied President Benjamin M. Bitanga said in a briefing.

The first phase of the financing is the private placement for shares estimated at P0.75 each, which will be launched in two weeks and finalized this quarter. An estimated three billion shares will be sold by MRC Allied, which will result in a 16% dilution.

“Once [Tampakan mine owner] Sagittarius Mines, Inc. starts drilling, it will reinforce our belief that our part of the ore body is an extension of the mineralization of Tampakan,� Mr. Bitanga said.

Last November, MRC Allied signed a P300-million deal for the operating rights of the 7,900-hectare Kiblawan copper and gold project near the $5.2-billion Tampakan gold and copper mine in Davao del Sur, the largest gold mine in Asia.

Mr. Bitanga said one local, one Chinese, and one United States-based miner are interested to explore the property this year.

The second phase of the financing is the public listing of MRC Tampakan, which will allow private financers to convert shares in MRC Allied into MRC Tampakan.

“If the IPO happens, the ones who bought MRC Allied shares will be the secondary sellers of MRC Tampakan,� Vicente Laza, chief finance officer of MRC Allied, told reporters.

Asked if MRC Allied was willing to sell a majority stake in case the Pangilinan or San Miguel groups are interested, Mr. Bitanga said: “I do not mind being in a minority position for as long as we have an active role in the mine.�

On Monday, MRC Allied entered into an exploration and operation deal with Pensons Mining Corp., which owns the rights to the 8,475-hectare gold and copper Paquibato mine in Davao City. Last month, the firm secured exploration and development rights in Surigao del Norte worth P310 million. In November, MRC Allied acquired gold and copper projects in Davao del Sur and Sultan Kudarat.

Meanwhile, the company wants to have its Naga, Cebu property to be used for a casino project, Mr. Bitanga said. The 190-hectare property, which is expected to command higher prices because of growing property demand in Cebu, is valued at P2 billion.

Shares in MRC Allied were unchanged at P0.80 apiece yesterday. — Neil Jerome C. Morales